Non-subsidised LPG And Jet Fuel Prices Reduced

Owing to a decrease in oil prices globally, oil companies have reduced the prices of aviation turbine fuel (ATF) non-subsidised LPG. The cost of non-subsidised LPG cylinder (weighing 14.2 kg) was reduced by Rs 43.50. It would now cost Rs 708.50 in Delhi.

Similarly, the price of ATF (fuel used in jet) was also reduced by 12.5%. In Delhi, ATF would now be available for Rs 52,422.92 per kilolitre (KL). This is the sixth cut in ATF price in a row since August 2014.

Beleaguered budget carrier SpiceJet has welcomed the move. SpiceJet CEO Sanjiv Kapoor tweeted: "ATF rate per KL in Delhi today reduced 12.5%, or by approx Rs 7,500 per KL. Much-needed relief given high cost of operations in India.”

“We expect all airlines to report profit in FY15, except Air India and SpiceJet. The fourth quarter, a weak period for travel, will be benefited significantly by low fuel prices and capacity reduction by SpiceJet. We feel IndiGo’s profitability will be further strengthened and could surpass its best result (profit of Rs 787 crore) till date,” said Kapil Kaul of the Centre for Asia Pacific Aviation.

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